Distinguish Between a Member-Managed and a Manager-Managed LLC

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The Answer is In a member-managed LLC, each member has equal rights in the management of the business of the LLC, regardless of the size of his or her capital contribution.Any matter relating to the business of the LLC is decided by a majority vote of the members.In a manager-managed LLC, the members and nonmembers who are designated managers control the management of the LLC.The members who are not managers have no rights to manage the LLC unless otherwise provided in the operating agreement.In a manager-managed LLC, each manager has equal rights in the management and conduct of the company's business.Any matter related to the business of the LLC may be exclusively decided by the managers by a majority vote of the managers.Certain actions cannot be delegated to managers but must be voted on by all members of the LLC.These include (a)amending the articles of organization, (b)amending the operating agreement, (c)admitting new members, (d)consenting to dissolve the LLC, (e)consenting to merge the LLC with another entity, and (f)selling, leasing, or disposing of all or substantially all of the LLC's property.

Distinguish Between a Member-Managed and a Manager-Managed LLC

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